A new Te Aroha emerges from the ashes

Posted on February 7, 2013 by Editor

Two years after Silver Fern Farms’ Te Aroha beef processing operation was destroyed by fire in December 2010, a state of the art facility opened in December and is up and running in its place.

Silver Fern Farms’ new $67m Te Aroha plant is a hot-boned beef processing operation designed for best practice processing of manufacturing cows, bulls, steers and heifers from farmer suppliers across the Waikato region.

It joins a network of 23 Silver Fern Farms processing facilities employing over 7,000 staff throughout the country. Te Aroha will employ up to 380 staff when operating at full capacity with two shifts in peak season with an annual capacity of 125,000 cattle.

At the plant’s official opening in December last year, Silver Fern Farms chief executive, Keith Cooper, said the new design reflected the company’s focus on plant economics and best practice processing and the investment was testament to the co-operative’s strong confidence in the sector.

The plant has been designed in consultation with internationally recognised experts in process layout and ergonomics. It is compliant with New Zealand, EU, US Department of Agriculture (USDA), and Chinese hygiene requirements and also to halal standards for the Middle East, Malaysia and Indonesia.

Te Aroha incorporates the latest meat processing technologies; including sophisticated traceability and yield measurement systems.

The plant is configured with a custom-designed two-level Milmeq slaughterboard. Extensive use is made of RFID tags, with scanning stations at slaughter, grading and boning stages, monitored through the new Marel Streamline computerised deboning and trimming system. The process has been designed for complete traceability and to enable Silver Fern Farms to closely monitor key production indicators.

Rapid feedback

This system has the capability to deliver rapid feedback to plant staff on how closely they are meeting customer requirements for particular cuts. This fits with Silver Fern Farms’ plate-to-pasture strategy where consumer requirements are driving process improvements in order for the company to extract higher value returns from products.

This data collection is underpinned by the Primary Growth Partnership FarmIQ joint venture programme – an investment of $151 million by Silver Fern Farms, Landcorp Farming, Tru-Test Group and the Ministry of Primary Industries.

Over the seven years of the programme the aim is to integrate the red meat value chain to maximise returns to farmer partners.

For farmers, information collected at the Te Aroha plant on meat yield and quality can be used to inform farm management decisions as they look for avenues to lift farm system performance. This information can also be married with information from the insights FarmIQ will bring from consumers so farmers can produce to target higher-value returns from specific consumers.

Trimming to specification

Following break-down and deboning, the primal cuts are distributed to work stations on the trimming line, based on operator availability. They are then trimmed according to individual specifications and all cuts are fully traceable. The automated conveyor system will enable Silver Fern Farms to closely monitor and control critical key production indicators in real time throughout the complete processing cycle. These include yield, throughput, cutting performance, giveaway and loss of sales. These are automatically registered and monitored for the entire line as well as for the individual operator, using Innova intelligent production control software.

Provision has been made for future installation of technologies including robotic bagging.

Sustainability top-of-mind

Eco-efficiency and sustainability were top-of-mind considerations. As a result, the new plant uses significantly less electricity and water per head and discharges less effluent per animal processed, setting new benchmarks in line with global customer requirements.

Keith Cooper says the rebuild gives the company an opportunity to review the environmental footprint of the operation. “Our focus is improving environmental efficiency while reducing costs through better use of resources and reduction of waste.”

The plant has also been orientated to ensure noisy areas and truck movements are at the centre or the rear of the plant, away from neighbours. Every effort has been made to reduce noise coming from the plant, even to the point that refrigeration equipment, undamaged by the fire, was relocated.

Health and safety focus

Health and safety was another major focus for the company when developing the specifications for the new facility. Process areas have been designed to minimise workstation hazards. A suite of solutions to minimise lifting, turning and carrying were factored into the design. The boning room has European-designed workstations intended to maximize productivity by minimising operator fatigue and discomfort. At trim stations adjustable work heights, reach to meat and easy access to work positions make for a safer and more comfortable work environment for staff.

Separate viewing areas let people observe the slaughter and boning processes without interfering with workers on the floor. The plant layout also factors in separation between pedestrian and heavy vehicle movement areas to provide a safer environment for people.

Throughout the rebuilding process, Silver Fern Farms endeavoured to provide alternative options for staff whose livelihoods were affected by the fire, to the extent of making positions available at other company plants in the North Island and providing accommodation supplements in the early stages. The company’s significant capital spend also has provided positive spin-offs to the local economy as a result of the number of contractors throughout the region engaged during the course of construction.

Cooper says the co-operative’s loyal farmer-suppliers in the area were particularly supportive of the company through the re-build.

“We are grateful to those suppliers who have stood by us and persevered while we got the new plant up and running – we know the disruption has been an inconvenience for many. But we are enthusiastic about the service levels and advantages we can now offer them as a result of our investment.”

Pictured at the Te Aroha opening are (left to right): local MP Scott Simpson; John Key; Eoin Garden chairman Silver Fern Farms; Keith Cooper, chief executive Silver Fern Farms; Kevin Winders, chief operating officer Silver Fern Farms.

This article has appeared in Food NZ magazine (February/March 2013) and is reproduced here with permission.

PGP project suggests meat industry ready to co-operate, says Barber

Posted on January 30, 2013 by Editor

Yesterday’s announcement of the Red Meat PGP Collaboration Programme for Greater Farmer Profitability at a total investment of $65 million is fantastic news for the whole industry, says meat industry commentator Allan Barber. The key words are ‘collaboration’ and ‘farmer profitability’, he writes.

The first of these has usually been notable by its absence, while the second combination of words has only been evident at irregular intervals.

Half the funding will be made available from the Ministry for Primary Industries (MPI)’s Primary Growth partnership fund, while 30 percent will come from farmers through Beef & Lamb New Zealand Ltd (B+LNZ) and Meat Board reserves and the balance from six meat companies, two banks and Deloitte.

B+LNZ’s contribution is contingent on levy paying farmers voting in support of the proposal at its annual meeting on 8 March. Although nothing is ever certain, it would be a shock if this support wasn’t forthcoming, because the programme represents a significant step towards fulfilling the objectives of the Red Meat Sector Strategy conducted by Deloitte and completed nearly two years ago.

The aim of the programme is to lift the performance of all farmers to match that of the best performers which was identified in the strategy as the best way of improving industry profitability. There is a significant gap between the top and bottom performers in farming methods and profitability. If this gap can be closed the gains for the sector and New Zealand are enormous.

The participation of the six meat processors – AFFCO, Alliance, ANZCO, Blue Sky, Progressive Meats and Silver Fern Farms – is as meaningful as it is welcome. These are the key sheepmeat processors which is recognition that it is the sheep meat sector in particular where the greatest gains are to be made. However, the focus behind the farm gate shouldn’t obscure the fact that there are substantial gains to be made from greater collaboration in the market place.

A striking aspect of yesterday’s press releases by Ministry of Primary Industries, B+LNZ, Alliance and Silver Fern Farms (SFF) was the difference in tone between the statements by the two meat companies and the enthusiasm with which Beef & Lamb is greeting the opportunity.

The tone of SFF’s press release was less than enthusiastic, emphasising the need for a levy vote in support before the programme could begin and the care taken to ensure this programme did not cut across SFF’s Farm IQ programme which was the first project out of the blocks.

In spite of a first sentence which confirmed SFF’s support for the collaboration programme, the main impression from the statement was that the company was a somewhat unwilling participant and would be guided by the farmers’ decision. If this happened not to be supportive, I was left with the feeling SFF would not be particularly upset.

In comparison with Keith Cooper’s guarded support for the programme, Alliance chief executive Grant Cuff was positively euphoric, stating:

“This new coordinated collaborative initiative will enhance the knowledge and capability in the sheep and beef sector and help improve farm performance, productivity and profitability.

“New Zealand can make significant gains in its export earnings by ensuring all parts of the value chain collaborate so suppliers are using the best available farm and business management practice and tools.

“This initiative is an important step in the implementation of the Red Meat Sector Strategy. We’re supportive of any steps to lift the industry’s game and improve on-farm profitability.”

After my recent call for a sheep meat strategy, I am cheered by this progress. Admittedly, results won’t happen immediately, but it provides an investment over several years during which industry participants will work together for the collective good.

This must be one of the best possible outcomes for an industry which is noted more for its divisiveness than its potential to cooperate in the interest of a better future for all the parties.

Allan Barber is a meat industry commentator who writes a number of columns on the topics. He has his own blog Barber’s Meaty Issues.

Red meat industry to work together

Posted on January 29, 2013 by Editor

The red meat industry has agreed to work together to promote and assist in the adoption of best practice by sheep and beef farmers, as part of a new $65 million dollar sector development project with Government co-funding.

Wayne McNee, director-general of the Ministry for Primary Industries (MPI), has just approved a commitment of up to $32.4 million from MPI’s Primary Growth Partnership Fund (PGP) for the red meat sector’s new Collaboration for Sustainable Growth programme.

This seven-year programme will bring together a number of participants in New Zealand’s red meat sector including co-operatively owned and privately owned processing companies that together account for a substantial majority of New Zealand’s sheep and beef exports, two banks and Beef + Lamb New Zealand Ltd.

It aims to ensure that red meat producers consistently have access to and are able to effectively use the best-available farm and business management practices, by addressing gaps in technology transfer and ensuring stronger co-ordination between organisations and individuals working with farmers.

MPI Director General, Wayne McNee says the new PGP programme will transform the delivery of knowledge and capability within the sheep and beef sector.

“Importantly this is the most comprehensive collaboration of its type ever seen in the red meat sector, and the opportunities are very exciting. The Collaboration programme will build base capability, delivering benefits across the sector and aligned with other PGP programmes.”

The next step to establish this PGP programme is to develop the contract with the Crown and to seek farmer support for their portion of the investment. It is anticipated that once the required farmer and company approvals and contracts are in place programme delivery can begin, expected to be in the third quarter of this year.

Organisations presently in this initiative are: AFFCO, Alliance Group, ANZCO Foods, ANZ Bank, Beef + Lamb New Zealand, Blue Sky Meats, Deloitte, Progressive Meats, Rabobank and Silver Fern Farms. The programme is designed to be open, enabling others to invest. Participants will establish a formal partnership to run the Collaboration programme.

Chairman of the programme’s Steering Group, Dr Scott Champion says the Collaboration programme is built on the findings of the Red Meat Sector Strategy and will deliver significantly on the Strategy’s sector best-practice theme.

“This initiative is evidence that the industry is committed to delivering on the recommendations of the sector strategy. More industry collaboration is high on the list of Strategy actions, and so to have the red meat industry focused on supporting farmers and united in this programme is of major significance. Importantly, the Strategy also underlined the returns available to all farmers by lifting productivity and management towards that of the country’s highest performing farms.”

The PGP programme comprises several elements, including investigating how farmers prefer to receive and use new information and what drives their profitability, as well as benchmarking and integrating relevant databases. New tools, services and knowledge will be packaged and delivered in a range of ways by programme partners.

“With a new awareness of what drives farm profitability, the Collaboration programme will change the sector’s focus from one that is dominated by price to one focused on performance, productivity, profitability and the factors we can control,” Champion said.

“This investment will support the sector to better control its future and ensure confidence for continued investment.”

The Red Meat Sector Strategy was jointly developed by Beef + Lamb New Zealand and the Meat Industry Association, with funding support from the Government. It was released in May 2011.The Strategy identified a range of activities that, when implemented, will improve sector productivity and profitability, and provide greater certainty for participants.

Burger hell

Posted on January 18, 2013 by Editor

The discovery of horse and pig DNA in frozen beefburgers manufactured primarily in Ireland this week has sent the UK and Ireland into a spin as experts try to track its source. While checks are in place here in New Zealand that should prevent a similar thing happening, it is a salutary lesson for the meat industry about what could happen if consumer trust is broken.

What happened in Europe, is that frozen burgers, supposedly made from beef by major EU meat processor ABP Food Group, were routinely DNA-tested by Food Safety Authority Ireland (FSAI) and found to contain meat/protein from other sources including horse and traces from pigs too. The affected burgers, produced in the company’s subsidiaries Liffey Meats and Silvercrest Foods in Ireland and Dalepak Hambleton in the UK are sold in Tesco, Aldi, Lidl and Iceland stores in the UK and in Dunnes stores in Ireland.

Though the FSAI stated in its announcement on Tuesday (15 January) that there was no food safety risk from the products, all retailers have all reacted quickly to remove the items from sale. Tesco, which has also removed all other products from the suppliers from its stores and online, has apologised to its consumers and is promising them that it will find out what has happened and when it does so, it will tell them.

Other supermarkets have also withdrawn similar meat products while answering the British Food Standards Agency’s urgent questions to all British retailers about the exact contents of those items. To date, a total of over 10 million burgers are estimated to have been withdrawn from sale.

The issue is accumulating column inches in the UK and comment from Jewish and Muslim religious groups, animal welfare groups and unions demanding more transparency and more regulation for the meat industry.

ABP is taking the matter “extremely seriously” and says it has “never knowingly bought, handled or supplied equine meat products.

“We are shocked by the results of these tests and are currently at a loss to explain why one test showed 29 percent equine DNA,” the company says, adding that it was checking thoroughly with the two concerned suppliers and “is considering its options”. ABP is conducting its own DNA analysis of the products and will be implementing a new testing regime for meat products which will include routine DNA analysis.

The company assures that its group companies only buy meat from licensed and approved EU suppliers. “These results relate only to where beef based products have been sourced by those suppliers from the Continent. Only a small percentage of meat is currently procured from outside the UK and Ireland. Fresh meat products are unaffected.”

The latest comment in The Guardian suggests that the horse DNA might have come from additives extracted from protein sources, rather than fresh horse meat directly.

NZ: legal requirements not to mislead

Here in New Zealand, there are legal requirements not to mislead the customer, says the Ministry of Primary Industries (MPI), which will be keeping a close eye on proceedings in the UK.

New Zealand processors are subject to performance-based verification by MPI and meat products are not permitted for export until they first comply with requirements for sale domestically. In addition, MPI provides export certificates that provide MPI-verified assurances on the species of animal from which the exported products were derived.

Under its mandatory Species Verification Programme – which checks the effectiveness of the regulatory requirements in place to ensure truth in labelling with respect to species of origin – MPI samplers collect 300 samples of meat from randomly allocated cold stores all around the country. Each sample is tested and the test includes checks for contamination by other possible species, using the enzyme-linked immunosorbent assay (ELISA), which identifies proteins unique to a species. For example, a sheepmeat sample will be tested for the presence of cattle, deer, goat, horse or pig meat. These tests are conducted by an MPI contracted laboratory to do independent testing using an International Accreditation New Zealand (IANZ) method. The contracted laboratory operates under comprehensive quality systems that, as a minimum, comprise compliance with the ISO 17025 ‘Standard for technical competence of testing laboratories’.

In addition, the Australian/New Zealand Food Standards Code maintains standards for meat and meat products, specifying the proportions of fat free meat flesh and fat (sausages, for example, must contain no less that 500g/kg of fat free meat flesh and the proportion of fat in the sausage must be no more than 500g/kg of the fat free meat flesh content). There are also separate checks for contaminants and residues.

Together, these controls minimise the possibility of a meat not being mentioned in packaging being in the New Zealand product, says MPI, adding that there are no known incidents where a meat product in New Zealand was discovered not to be what it said it was.

‘Momentous’ US/NZ food safety agreement signed

Posted on December 14, 2012 by Editor

Ministry for Primary Industries deputy director-general standards Carol Barnao (left) and US Food and Drug Administration deputy commissioner for food Michael R Taylor sign a systems recognition agreement at a meeting in Washington DC.

New Zealand this week became the first country in the world to sign an agreement with the US Food and Drug Administration (FDA) that recognises each other’s food safety systems as providing a comparable degree of food safety assurance.

Meat exporters will welcome the move, which will enable

streamlining of product to the market – New Zealand’s top destination for beef, fifth largest for venison and fourth largest for lamb – through the reduction of red tape and costs.

The Food Safety Systems Recognition Arrangement was signed at a meeting in Washington DC by delegations from the Ministry for Primary Industries (MPI) and FDA.

“This is momentous for MPI as it is the first time the FDA has recognised another country’s food safety system as comparable to its own,” says MPI deputy director-general standards, Carol Barnao.

“The arrangement with New Zealand is part of an overall strategy for strengthening the global food safety net through closer collaboration with regulators around the world, highlighted in FDA’s report Pathway to Global Product Safety and Quality,” FDA’s Deputy Commissioner for Food Michael R Taylor says.

Carole Barnao says both countries have done a huge amount of work ahead of this week’s signing.

“This process has included a comprehensive review of each country’s relevant laws and regulations, inspection programmes, response to food-related illness and outbreaks, compliance and enforcement and laboratory support.

“In one calendar year, FDA and New Zealand officials spent an intensive period of time together including visiting production plants, cold-store facilities, verifiers and accreditation authorities looking at the effectiveness of how each other’s preventative controls and verification systems worked.”

Barnao explains that both countries intend to use the agreement to lessen the potential regulatory burden for foods traded between the countries by removing unnecessary duplication of activities.

The agreement covers all foods and animal feeds regulated by the FDA, which equates to $1.5 billion of New Zealand’s current exports of primary products.

“Systems recognition agreements are very important for MPI to help us achieve one of our key strategic goals of maximising export opportunities through other countries’ recognition of the credibility of our food safety controls,” Barnao says.

Lower lamb prices expected, but firm for beef

Posted on December 14, 2012 by Editor

New Zealand’s meat processors and farmers can expect lower lamb prices over the remainder of the 2012/2013 production season, while beef prices are expected to remain firm over the next two years, says the Ministry of Primary Industries (MPI).

Deteriorating global economic conditions are having a significant impact on returns for New Zealand’s primary produce, according to the MPI’s recently released half-year update to the annual Situation and Outlook for Primary Industries report, which was published in June.

The update shows there has been strong pastoral production so far in the 2012/2013 season. “This is partly due to favourable climatic conditions during the previous season which left breeding stock in good condition and also ongoing expansion of the dairy herd,” says Chris Jones, manager of economic information and analysis for MPI’s sector policy division.

However, MPI reports the continuing economic slowdown, particularly in the traditional markets of the European Union, is causing weaker demand for some products such as lamb resulting in lower lamb prices. In addition, the strengthening of the New Zealand dollar against most major trading currencies in recent months is having a dampening effect on farm-gate returns for primary produce.

In contrast, beef prices are expected to remain firm over the next two years, following a major drought in North America affecting production there.

As a result, primary sector export revenue for the year to June 2013 is forecast to be around $27.5 billion, down five percent on the previous year ($29.2 billion).

New frontline border staff

Posted on December 10, 2012 by Editor

Forty six new border staff graduated last week boosting New Zealand’s biosecurity frontline.

With training completed of the largest intake of border staff in over a decade, the Ministry of Primary Industries (MPI) issued warrants to 43 new quarantine inspectors and three new detector dog handlers at a ceremony in Auckland.

Welcoming the new graduates Primary Industries Minister David Carter said, “As Government had planned, these new border staff bring MPI’s bisoecurity frontline up to full strength and will help meet the demands of the summer peak season.”

The majority of the quarantine inspectors will be based in Auckland and five will go to Wellington. The three new dog handlers will go to Auckland, Wellington and Christchurch.

Four existing warranted quarantine inspectors who have trained as dog handlers also graduated. They join the 11 detector dog handlers that went through the MPI training centre earlier this year.

Beef industry stamps footprint

Posted on December 6, 2012 by Editor

The government recently announced that it will not sign up for new commitments under the Kyoto Protocol when the treaty’s first commitment period expires at the end of next year. However, this does not mean the meat industry’s sustainability focus will lessen, or that this country’s greenhouse gas (GHG) mitigation efforts for the primary sector are not important.

In August, the New Zealand Beef Footprint study was released highlighting beef productivity gains and giving New Zealand’s beef processors and exporters the comprehensive information they need for their customers about the meat’s carbon footprint.

Meat Industry Association (MIA) chief executive Tim Ritchie says that his organisation had supported the study because sustainability is still a critical issue in important markets.

“While it is possibly not as front-of-mind in markets as it was two or three years ago, sustainability remains very important and greenhouse gas emissions are a key component of sustainability.”

The study has created a benchmark for understanding where greenhouse gas (GHG) emissions are occurring across the beef supply chain, including production, processing, transportation and consumption.It has found that the majority (over 90 percent) of emissions occur on the farm. The footprint varies depending on the type of farm, the sex and age of the animals and whether or not animals from the dairy industry are used.

Overall, the weighted New Zealand average GHG emissions from beef animals from sheep and beef farms was 10.5kg CO2-equvalents (CO2-e) per kg of liveweight.Emissions arising from transport to market are extremely low.

Transport accounts for 4.2 percent of emissions, the report shows. In particular, oceanic shipping is very efficient and this study shows it contributes just 1.1-2.7 percent of the total carbon footprint.In addition, consumption accounts for 3.3 percent of emissions whi

le just 2.1 percent comes from processing, which the report notes “is an area over which industry has direct control and where technologies are available to reduce emissions.”

Dr Stewart Ledgard, the lead author of the report says that until there is a globally-agreed methodology for ‘footprinting’ of meat products, it is hard to assess how New Zealand’s footprint compared to others. This study used the Life Cycle Assessment approach, which is consistent with the PAS2050 published standard for GHG footprinting.The beef study was undertaken by AgResearch and funded by the Meat Industry Association, Ballance Agri-Nutrients, Landcorp and the Ministry for Primary Industries greenhouse gas footprinting strategy. B+LNZ Ltd and individual meat processors provided data and information for the study. This adds to a study already completed on New Zealand lamb’s carbon footprint in 2010.

More reading: see ‘A Greenhouse Gas Footprint Study for Exported New Zealand Beef’, M Lieffering, S Ledgard, M Boyes & R Kemp, February 2012.

This article appeared in Food NZ magazine (December 2012/January 2013).

New programme to add value to beef

Posted on December 3, 2012 by Editor

A new $87 million innovation programme that will look at how more value can be generated from beef carcases has been approved for Government funding.

Ministry for Primary Industries director-general Wayne McNee today announced approved co-funding from the Primary Growth Partnership (PGP) for the new Foodplus programme.

The PGP Fund is committing $43.5 million over seven years for the programme, which is worth $87 million in total and is being run by ANZCO Foods.

Foodplus will identify opportunities to create new products, with a particular focus on parts of the beef carcase that currently generate less value. ANZCO has identified three markets for innovative new products: food, ingredients and healthcare.

ANZCO Foods is a multinational group of companies and one of New Zealand’s largest exporters, with sales of $1.3 billion and employing more than 3,000 staff worldwide. ANZCO Foods also owns processing plants and a cattle feedlot: CMP, Riverlands and Five Star Beef.

“Adding further value to the carcase is essential for the future success of the meat industry,” says McNee. “ANZCO’s vision for Foodplus is relevant and bold and now backed by a significant investment.”

Rennie Davidson, CEO of ANZCO’s Food & Solutions division says ANZCO welcomes the opportunity to partner with the Crown on the Foodplus programme. “It is a large-scale project that wouldn’t be achievable without collaboration. We’re excited about the potential that this will bring to the sector.”

This announcement brings the Government’s investment in meat industry PGP programmes to $129.5 million, for projects worth a total of over half a billion dollars.

Minister welcomes announcement

Primary Industries Minister David Carter has welcomed the announcement of another successful PGP bid which lifts the total invested in the variety of projects to more than $650 million.

“ANZCO’s proposal to generate more value from the beef carcase with its Foodplus programme is bold and innovative. This is exactly what PGP is about – transforming great ideas into tangible R&D programmes focussed on results,” says Carter.

“Today’s announcement lifts the total government-industry investment in PGP since its inception three years ago to $665 million. This is firm proof of the Government’s drive to lift economic growth through primary sector innovation.

“Thanks to the collaborative government-industry approach, we have relevant projects underway across a range of sectors from dairy, arable, red meat and wool to forestry, seafood and aquaculture and manuka honey.

“New Zealand stands to gain from innovative investment in its primary industries because our food, fibre, fishing and forestry sectors are at the heart of our economy,” says the Minister.

ANZCO Foods is a multinational group of companies and one of New Zealand’s largest exporters, with sales of $1.3 billion and employing more than 3000 staff worldwide. The company owns processing plants and a cattle feedlot within a group including CMP, Riverlands and Five Star Beef.

Landcorp to return $20 million dividend to government

Posted on November 28, 2012 by Editor

State-owned farm, Landcorp, has had a solid performance this year according to its latest accounts, says meat industry commentator Allan Barber.

Landcorp’s net operating profit of $27 million for 2011/12 was down on the previous year, but still a good performance, Barber says in a recent blog, adding that the SOE will pay a $20 million dividend to the Government.

During the year, it produced 10,176 tonnes of sheepmeat, 9,715 tonnes of beef and 2,258 tonnes of venison, as well as large volumes of milk solids, wool and timber.

Landcorp has a target of selling 80 percent of its lambs on fixed price contracts to Silver Fern Farms, Alliance and other meat companies and last year achieved in excess of 70 percent by this method, proving to its satisfaction that this provides less volatile and overall better market returns than spot trading. Lamb production is geared to meet specific weights and specification to fulfill meat companies’ contracts with northern hemisphere retailers.

As a founder partner with Silver Fern Farms and the Ministry for Primary Industries in FarmIQ Systems, Landcorp is committed to the development of integrated value chains from pasture to plate, designed to align New Zealand production and supply with consumer demand preferences. Twelve of Landcorp’s farms are now on FarmIQ’s farm management system.

The development which attracted the most publicity was the joint venture with Shanghai Pengxin to manage the 16 Crafar dairy farmers bought from the receivers and expected to get underway shortly. This fits in with Landcorp’s goal to increase its involvement in the dairy industry and a further “extension to Maronan Dairies in mid-Canterbury and further development Wairakei Estates near Taupo will contribute to this,” Barber believes.

Sheep and beef finishing has been boosted by the development of Cheltenham Downs in Manawatu and this has helped recovery from the drought years of 2007 and 2008, reports Barber.

Over the past 22 years, Landcorp has paid dividends to the government; therefore, New Zealand as a while, of nearly half a billion dollars.

“There’s no evidence that Landcorp is constrained by public ownership or that it would benefit from part privatisation,” concludes Barber.

Read the full blog item here at Barber’s Meaty Issues …

This item has also appeared at www.interest.co.nz.

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Tag Archives: MPI

A new Te Aroha emerges from the ashes

PGP project suggests meat industry ready to co-operate, says Barber

Red meat industry to work together

Burger hell

‘Momentous’ US/NZ food safety agreement signed

Lower lamb prices expected, but firm for beef

New frontline border staff

Beef industry stamps footprint

New programme to add value to beef

Landcorp to return $20 million dividend to government

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